THE URBAN AGE 17:4/0 U R B A N I N F R A S T' R l J C T tJ R E I S S U E The Changing Nature of Infrastructure infLatrtiCtLire. I he s.s rdC CrljtI its hilnl es of ConCrete roads. teel pi ders. mid metiil pipelies. Ove0- the XLri. it has been identified svith huge pliXsiLal p ctLi- darms. sLXserag tunnels. super highv aNs. aLnd dlectric utility plaits. Suich ineLa projet, hase insolsed billions of dollart otcapital t osts and heeiti L iclnc uf a countit s ecoiioim ic grovth and piosperitv_ Yet the s iew of intrastructure i, chanigilig. Prodded by deteriorat- - inn roaidways and bridges, shrinking public finances. and a rash ( if naltual disasters. cities in both devclopcd and developing countries - r * have begun to rethink the conicept if' infrastructure. Is it a static physical citity'? A invriatd collectionr Of techioloegies and scr ices' NecessaTily a public sector activits'' Atid sity docs it often scem to be in suCh poor sliapet '- These questions base led national governimenil anid tiultilatcral aid * * I 4 agencies to rcdefine the nature of itnfrastructitre. I .endetN ai-e also ' -: grappling to understand why the vast sum s cif niolet slperlt otl . -.P . infrastruitg ure over receiit decades has e ntwt sul ei in ercaici benefits /i ili lit ttt t i vi t 4 to developitig conttries. Developing countries has e allocated tin tilt U ,,i, tt/itlt.t as erage oine-ttiird to over onie-half of public investenien to inirasiruc . - ture sectors, yet many still lack adequate services. TrafflIic clogs urban streets, v, aler aiid sewcrage facilities are nonesslernt or s astl) ose - THE STAKES s orked. aind utilities fail to provide reliaible sources of power. IN THIS ISSUE Deteriorating infrastructurc seriously cotistrains the productivity Oif lnltrastructure scrs ices have takern many developing coutliry cities through failing to attract pris ate on a newk urgency in pant because I The Changing Nature investment and in jetipardizing public health and safetv. the) have a direct hearinig oni of Intnltrueture The dilemma is not reserved solcly far the developing sorld In economic growth. Studies sbhow 7 TechtocnaniE apargie:tThe January 1993 the 01C'D hbstcd a mriecting of experts ti) discuss that adequate infrastruictuire Robert MacLeond ittfrastructure policies for the I 990s. Citing an infrastructure "over- reduces the costs ot prodICtion, 8 Guinea-Bissau: Social load" likely to increase in the tiext decade, the conference called for which affects prolitabilit, levels Infrastrucnire Project Develops governcments to make dlif'f'icult decisions on hbw to improve effi- Of sOIutpt. and employment, Schools, Hospitals by Fphim ciency. which projects tot select, and hoss to finance them. The particularly in small-scale bust- ShIuger conclusion of the group was that infrastructure is a complex issue that nesses. When infrastruLCtUre 9 AGhTLP: Private-Sectnr seems to be requiring more and niore lead-in timile and planning. "works." productivity and labor ManagementTakes Rout in Africa With investment in infrastructure iti the United States estinated at itcreases. When it does not work, byafie pe ;as higih as $1.4 trillion, concerns about its deterioratioit arc also econotmic renmewal can be post- growng. A committee of the U.S. Nattional Acadcmy of Scieice's potted or eveni halted. This isEPII ENTS National Research Council calls infrastrUCture "a s ide r an,ge of especially true of countries 2 Lettes to the Fitr economic and social activities, a criicial enlabling envirninmcint for stiuggling ssith structural aidjust- 3 Worldew Infrtsumeture: The economilc grotwth and enhanced qualiiB ot)f life.... We must find ncss nlielnt progranss or hoping to restart Crux of Moderm Developirent by and irniagitiative ways," continues the committee, "tito deal ,ithl the a stagnitat econtnoiy . In Inidia, ftsr Akin, Mabnognj,e problems we hase created for ourselves thrtugh past policies andt exaniple, it is perceived that the 9 CormmunitiesSpeak Conttrnunity programs. [)oiig nothing at all. simply wsaiting hor thc future, is effects tf the country s bold Revitalization in the South Bronx intolerable." ecollnloic refoirms could be foiled It Q & A An Interview with Magane Wade, Executive Director, nIw1tIllu'df on1)l } ACiETIP ,ttttiiittt / 'ii t 12 From the City Manager's Desk 1 3 Book Reviews 135 The Urban Calendar Danida ------------------ r- urln t W ie we/come your conmiments, thoughts, atnd citit i.sms on fiture issues of tile rban Age. Below is a sampling of H lManagemenl R continents ald suggestions received oni our Ul Trban Entrepreneurs issue. _ Programme 1 > Dcar- Editor: create jobs, and contribute to economic growth, This issue of the urban oge is funded by the Danish Agency for International I read with great intercst the last issue ol the Urban and ii) the implications for local financial Developmuent. the Fedcration ol Can)adianr Age dedicated to urbatn entrepreneurs arnd the institutions which face this dynamic. potentially Muniicipalities, and the World Bank. economy. As a Braziliai, I would like to add to the prolilable set of clients. Developmental funding for the newsletctr discussion the UrHanx Age has stated. A recent review bv the Gender and Poverty has bcen provided bv the UNDP- UNCHSlHabitat)-WNorld Bank The itiforntal sector in Brazil has been seen as (GAP 'I Team ot the Bank's project portfolio Urban Management Progratnite atid a sector that. while tiot generating salarie( reveals that enterprise projects that reach the World Batik. eniploynitenit. does nievertheless getterale prod- women clients in the Asia Region are typically ucts, services, and incomes for millions of people. agricubltire sector initiatives. For exaniple 4 of III thle 1970s economists and sociologists insisted the 27 projects f-om 1983 to 1992 were = I 11I I I I on its role as a survival strattegy ftr the urban industry sector initiatives, anid they rcpresented proor atid on it impportance within the urban only 6 percent of Batnk lenditig. Jeb Brugiiann economy. Since the 1980s, however, scholars Rettictance of Banik project designers attd ICLE:I YJro)tto, Canaidli have been calling for reconsideration of the local financial institutions to support urban C D. Shabbir Cheema original concept of the informal economy. It is microenterprise itsitiatives could le due to a Charles Correa necessary to differentiate between the 'informal perception that urban low-inconice nieighbor- Boltbav, India sector of the poor" and the, "underground or hoods are unstable. It is true that there are often Zsuzsa Daniel illegal economv" where different economic social and cultural differences beiween lenders ienistryh Insitute oflhe Hungarian agents make ttse of sophisticated methods of and low-iticonoe borrowers. 'I'here is a legacy otf Ministrv of linein, e Budapest, Hungerc hiding from taxes and tariff duties. It is believed subsidizcd credit, politically ituotivate(d lending Maniadou Ditp that activities related to the narco-traffic have progrants, low repayment, credit diversion, and Dakar Cotnmuzitv Council been inflating this illegal economyn debt forgivettess in ritany cotintries. Urban Da4in,- Senzegalc Nigel Harris On the other hand. a new trend in the urban areas are especially prone to some of these Develomnnent Plarming Ufnit labor market has emerged that also calls for- biases. London. England reconsidetrationi of the social actors of the so- Despite such challenges, urban areas can be Aprodicio Laquian UiBC Centte for HNunetiilc Settlementts called infonnal economy. Data front the imust fertile groutttl 'or projects which provide Vorncouver; Canada recent National Household Surveys IPNADs) appropriate services to enterprises. Transaction Jainme Lemer show that it urban areas self-cmploymttetnt has costs can be ctontrolled, taking advantage of Prele il ura Munici pal CPrutiban Brtizil been growing touch faster thian salaried labor. existing banking infrastructure. The experi- Akin Mabogunje Interestitagly enough, it has been pointed out that ences of PRODEM (Bolivia), ADEMI IbcTdan, Nigerie such growth is not niecessarily associated with the (Dominician Republic), and SEWA (India) have Pablo Trivelli Urban Manvhgement Pngantie iiicteasing itimpoverishiteent otf the population nor demonstrated that urban strategies may be Qtlito. Ecutedors with the expulsioni frotti the 'orrotal labor market especially effective in reaching women clieists. Jaime Valenzuela due to econioitiic restructuring. li Rio tIe Janeiro, As the LJrbatn Age articles show, it is critical IULA/CEI.CADEI., Quito, Ectuador to givC an exaniple, it has been oibserved that the to understand the needs of microenterprise greowth cf sel f eTltplovment has been higher operators and finanicial itsstitutiotis itt order to _____ .____________..._ _ b hetweeti toiddle and tipper income groups than develop sustainable, mutually betteficial. hetween the low-income popUlation. Joining the dynamic relationships which will contribute to infirmal sector are increasing ntimbers of poverty reductiotn and ecotinioiic growth in Ar-if Hasait protessionals and white collar workers who made developing couiittics. Kaurachi, Paki.tsta the shiIt for personal reasons. Linr Betitetli and Mike Goldberg llilda Herser If one is to consider policies for the informal I he World Bank Celtttr E.atliod.u Sociiilct Atnbietitales Buetosi Aires, Argentuina sector. these types of "nuances" should be taken Peter Swan into account. UNCHS, Vairoli, Ken!ia Licia Vualladares Editor's Note Instituto Univet'sitario cie Pesauuites dlo Rio tie M ililillilll 1l eito (1UPERJ, Rit de Janeiro, Brazil In this issue we take a look at the changing Editor: nature of infrastructure, with particilar focus on African efforts to itoprove the flow of Editor Mary McNeil We would like to comiiiosend you on thc thoughit- servicestousers. Private-sector participation Production John S. Metzger provoking articles ii the latest issuc of The UJruttil (through AGETWs). the ittiportance of Distribution Consuelo Powell Age. The issue contributed to the World Batik's "social infrastructure," and the growing uniderstaiiditac of the needs of urbats turobers of technical exchange programs The Ulbtgfire is published foui tunecs a oiirocinteiprises atid identified sormte ol' the more betweeni cities are highlighted. year and is available to dev eloping successful innovative institutiotnal responses. Our next issue (Summer 1993) will focus country subscribers free of char"e. on the global problem of urban violence. Developed country subscribers are For the Baik, the discussion I`otuses on two particularly as it affects youing people. We charred UtS$40.00 annually. Editorial key considerations: i) the services thal look forward to yotir comimlenits on this issue, Offices are located at Roonii S 10-108 itticroctiterprises require to increase income, as well as suggestions for the upcoming one. The World Bank. 1818 H Stiect NW. Washington D.C 20433. U.S.A. Facsimile: 202-477-1391 t3 ~~----------------------------- Infrastrtucture: The Crux of Modern Urban Development by Akin Mabogunje Akin Mabogutnje is ani urbani geograplher and chair of the National Board of Commnunivy Bantks in Lagos. Nigeria. He has taught at universities L worldwiide and has written extensively on city, regional, and niational plannintg in Africa. n all developing countries, particularly those in Africa, the acid test of affairs of such urban centers. Invariably, what such re-arrangement calls for efficiency in the management of cities is the state of infrastructural is the greater democratic orientation of urban management allowing citizens provision. Howv much of the road system in the city is tarred? How to be easily mobilized and motivated to pay the installation and maintenance well maintained are those already taired? What about water supply, is costs of their infrastructural needs without excessive evasion and delin- it available twenty- four hours a day? And electricity. how frequent are quency. It also calls for bctter land administration. the dcvelopment of fiscal blackouts? Telecommunications-how much hassle is there to put a and legal cadastre, a closely coordinated physical planning. and an effective phone call through? Perhaps of more immediate impact on the visitor to taxation system. More than this, it necessitates an administrative orientation the city is the state of environmental sanitation. low clean are the that enables urban residents to be able to see the close relation between the streets? How effective is refuse collection, particularly, refuse disposal? taxes and the fees that they pay and the services (and the quality of them) that How is sewage and other effluent disposed of? How safe is driiking they receive. In other words, the re-arrangement of affairs is towards making water? For maniy urbani residents the ease of travel from home to the the management of cities inore transparent and accountable. workplace and back is often of greater importance. How adequate are African nations in the post-colonial period have gone through a the mass transit transport facilities? How much scrambling must one period of increasing centralization when most of the functions of city engage in to get from one place to the other. How are the buses and administrations as providers of infrastructural needs were taken over by minibuses manage(d and how costly are their services? central or higher levels of government or handed over to parastatals. All these basic r equirements of urban existence have not always been This created a degree of opaqueness in the management of their urban so. They are the product of modern urban industrial development. The centers and is responsible to a significant extent for the poor state of pre-industrial city had very little need for most of these contrivances. infrastructural provision in many of these cities. The prevailing eco- partly because it was not so large, partly because there was not always a nomic crisis in most of these countries is today inducing a better separation of home from workplace for the majority of inhabitants. and appreciation of the need to decentralize and to empower urban adminis- partly because the technological solutions for dealing with the environ- tration to render its fundamental obligations to its residents. Such mental nceds of their not-so-large population had not been perfected. It empowerment must, however, go hand-in-hand with conceding to was true that the ancient world could boast of relatively largc cities municipal authorities the autonomy to mohilize resources from all like Rome which had a population of over 100,000. Cities like Paris possible sources, including raising bonds on the capital market, so as to and Venice had also reached this figure by the 14th century. But by be able to provide their residents with adequate infrastructural facilities. and large, most urban centers before the industrial era were small- For this empowerment to yield the expected results, it must not stop scale affairs, with population varying from a few hundred to about at the level of only the municipal authority. It must permeate down to 40,000 inhabitants. urban residents organized in their neighborhoods and wards. Residents Modern industrialism with its factories and mass production capabili- must be kept fully informed of all proposed developments (infrasuruc- ties changed all that. The moderni city became the creature of tural or otherwise) in thie city and be allowed to have a voice in the technology. InfrastrucLural provision on an extensive, continuous, and decisioni-makinig, especially when this entails financial obligations for self-sustaining basis became a sine-qua-non for the efficiency of which they would eventually be responsible either by way of user- operations of urban enterprises and the liveability of cities. This provi- charges or increased taxation. The idea of a municipal authority or a state sion, in turn, was characterized by technical indivisibilities and parastatal incurring a heavy investment burden through borrowed funds for investment lumpiness. Water reservoirs must be provided to be adequate to improving the water supply system in a city without informing or securing serve a growing population over several years. They cannot be constructed the commitment of the residents to repay the debt over time is a classic recipe incrementally on a yearly basis. The same thing can be said for an electricity fur fiscal delinquency and financial irresponsibility. power station, a telephone exchange, a refuse disposal site and so on. What this emphasizes is the close relations that must exist between Modern urban infrastructure thus gave rise to a quantum leap of the efficient provision of infrastructure and good municipal gover- change in the history of urbanization. It required that the management of nance. A municipal authority that would provide and maintain its the affairs of citics be placed on such a new footing that each city can infrastructural facilities in good heart on a self-sustaining basis can do pay to provide itself with these basic necessities. Starting with the so only if its activities are transparent to its residents and subject to Municipal Incorporation Act in Britain in 1835, cities everywhere in the public accountability. world have had to engage in major urban reforms to ensure that they are Urban reform has become a compelling priority in Africa in order to in a position to raise adequate financial resources to pay for their ensure that many cities provide their residents with the infrastnmctural infrastructure. Urban planning was also transformed to take account of facilities they require. The ability of African governments to see this the need to extend infrastnrctural facilities and services to individual reform through is bound to be the measure of how quickly their cities plots of land within the city. The links between urban infrastructural and metropolitan areas can become part of the rapidly evolving network provision, urban land administration, physical planning, taxation, service of global cities of high and growing productivity. delivery, and urban. management thus becamiie an intricate and essential web in the development of the modern city. At the height of European coloniza- tion this complex relationship had come to be taken for granted. Large The ideas expressed i7 "World Viewv" are sioa representative of any agency or organization. but reflect the persoanal comments of each author. Thev are included agglomerations of people were allowed to emerge in particular sites to stnitulate lively debate and interaction on various issues in the developed and without a strong appreciation that this requires a major re-arrangement of the developing wcorlds. SrE UAORN A9E Spring 1 993 INFRASTRUCTURE continued from page I by shortages in electricity and communications. Not maintaining A NEW DEFINITION facilities also has its costs. In sub-Saharan Africa the World Bank estimates that the backlog of neglected maintenance for roads alone Given the imiportance of infrastructure, why has it apparently fallen into exceeds $5 billion, more than seven times the annual spending such disrepair? In large part, the dilemma results from a lack of attention j needed to keep the roads in good shape. to operations and maintenance of existing investments. The situation wa In addition to economic considerations, inadequate infrastruc- made worse by the fiscal crisis of the 1980s. Decreases in expenditure, ture affects the health and well-being of citizens. The 1991 cholera however, are not necessarily the reason behind the decline in perfor- epidemic in Peru (largely a result of improper sanitation) in eight months mance. More important has been the static concept of infrastructure, caused over 269,000 cases, 2,500 deaths, and hundreds of millions of which fails to recognize that infrastructure is an on-going process of dollars in lost revenue from tourism and exports. Sanitation problems in delivering services. Funding of operation and maintenance, training and Lagos, Nigeria, are not dissimilar; only one-half of the city's domestic rewarding of staff to run facilities, and institutional and policy reform refuse generated daily is being collected. Throughout the developing often have not been given adequate attention in project design. Emphasis world, less than one-half the population has access to safe drinking instead has been on resources to construct and expand physical assets. water. The unavailability of such services as water and sanitation is Not as much time has been devoted to thinking through infrastructure's itself a measure of welfare; people are poor because they do not have long-term up-keep, or even the genuine demand for the services. access to basic necessary services. Infrastructure thus affects the Although this imbalance has begun to be corrected, recent independent dimensions of poverty; in developing countries it has become a studies have shown that the implementation of projects has been central poverty issue. woefully inadequate; in laypersons' terms, this means that the "flow" of services, such as for opcration and maintenance, has been neglected. The World Bank, in a recent review of its lending in the sector, calls for a new focus on this "flow of services," as well as on the demands of users and their willingness to pay for services. The report calls for L7_9 1! l greater use of the private sector and encourages commnunity participation in project design. "Many infrastructure services do not have good sustainability over the long-term," says Ch-ristine Kessides, leader of the team who prepared the new report. "We need to focus inore on end-user performance and give attention to the quality of services being delivered. Stressing the need to respond to customers implies an enormous psychological. shift in the way infrastructure is delivered." The new focus on "customers" shows that agencies are realizing that the end result, or the value gained by those who receive the services, is a more reliable indicator of a project's long-term success than are supply- side, top-down indicators. Do the people served need and want the services enough to pay for them and to be involved in their upkeep? Is it the kind of service they need and at a price they can afford? By respond- ing to "effective demand," which has its roots in community participation and a participatory style of planning, infrastructure projects can avoid the pitfall of being constructed without input from users who will be respou,sible for its upkeep and maintenance. With public finances stretched to the limit in many countries, users' willingness to pay for on- going services has become a crucial ingredient in projcct design. GETTING THE COMMUNITY INVOLVED I _ Yet matching supply, or the availability of infrastructure, with the cdemand for it has been extremely difficult. Despite large supply-side investrnents, Icasic needs among low-income groups still are not being met, in part because of demographic pressure and rapid urbanization. And finally, infrastructure has the power to determine the quality of tUnserved com,munities, recognizing that the only way to afford and life for residents, particularly in urban areas. Neighborhoods often arise maintain services is to provide it themselves, are in some cases taking around infrastructure services; they contribute to the community's the initiative to construct, pay-for, and maintain their own services. cohesion and livelihood. And it can also be a cause and a solution to For example, in 1983 the municipal government in Recife, Brazil, environmental concerns. Wasteful or environmentally damaging began a environmental upgrading project in Olinda (a city of 400,000 in methods of delivering water or of using fuels or land can drain a the metropolitan area of Recife). The project was launched in a slum country's financial and natural resources. Yet innovative transporta- neighborhood where the community association hired local labor to tion systems, such as those implemented in Curitiba, Brazil (see box, carry out drair age works using low-cost nmaierials produced through next page) can provide the public with reliable transportation with newly created microenterprises in the area. Neighborhood residents were minimal damage to air quality. Transportation costs in Curitiba are also responsible for maintaining the works. While initial concerms were among the lowest in Brazil. voiced through a community association for the larger area and through THE URBNO AGE Spring 1993 INFRASTRUCTURE continued from pope 4 political leaders, the project stimulated the creation of a dwellers' council within the pilot slurn neighborhood. The city supported community Tfanspoftatiofl in Cu[iitiba, NMzi* involvement by creating a special project unit within the municipal urbanization company that provided training and public education in additon t urbn upradig Th proect ontiues o suplv he cmmu- Curitiba's road network and public uransport systems are probably the most addiition to urban iipgrading. Trhe project continue, to supply the commu- influential elements contributing to the current shape of the city. Its public nitv with improved drainage, solid waste collection. low-cost sanitation. transport system was developed over a 20-year period beginning in the 1970s aisd road upgrading, when city authorities began implementing an urban design that emphasized Another example is in the informal settlement of Dharavi in Bombay, linear growth along structural axes. At the same time, they worked to pass land- India (approximatelv 400,000 people), which in 1979 formed a local use legislation for the transportation plan to be implemented. Organization called PROUD to improve its living conditions. Today. According to the plan. urban growth has been encouraged along five main axes with "structural" roads. Each axis was designed as a "trinarv" road system. PROUD is a well-e stablished, active organization made up of 150 The central road has two restricted bus lanes in the center for express buses neighborhood committees that meet monthly to discuss local problems flanked by tw o local roads. On each side of Lhis central road, one-block avway, and plan solutions. Problems that cannot be solv,ed within this committee are are high capacity free-flowing one-way roads, one for traffic flowing into the referred to one of fivc area councils; thesc councils are further represented in city. the other for traffic flowing out of the city. In the areas adjacent to each an exectifve committee which formulates policies and implements programs axis, the land-use legislation has encouraged high density occupation, together with ser-vices and commnerce. in the settlement. Because of PROUD's strong base of support among The plan was created to encourage the use of buses rather than metrolines or residents. it has been effective in petitioning municipal authorities for light railways. Buses are color-coded: exprcss buses are red: inter-district buses enviromnental impn3verents and blockinig plans for demolitions and are green, and the coiiventional feeder buses yellow. People cani easily tranisfer development that would adversely affect the community. form local buses to the express buses and back to other buses: large terminals are The importance of community participation is being recognized in located at each end of the five express busways for transfers. One single fare is valid for all buses within the citv. Despite having some 500,000 cars (more per industrialized countries as well. In the South Bronx, New York, an industrialized curcapita than any other major Brazilian citv). Curitiba does not have a traffic integrated plan for a $2 billion redevelopment project has been held up problem; its public transportation system' is used by more than 1.3 million so that community groups can participate in the design of a community passengers each day. The system accounts for the city having one of the lowest housing project (see story, pg. 13). The original design by the city failed rates of amnbient air pollution in the country, anid residents spend approximately to take community needs into consideration, especially regarding 10 percent of their income on transport, a relatively low proportion for Brazil. relocation of residents. With the backing of the Bronx Borough Presi- dent, the original design was scrapped, and the community, under thce rwlfo Cliia rzl EvrnetlCs td"b oa dent, he orginal esignwas srapped and he enumunit. undr theRabinovitch, Instituto de Pesquisa e Planejamento Urbana de Curitibi banner of the Nos Que Damos (We Will Stay) committee, is redesigning the project with the help of technical and professional expertise provided on a pro bono basis. City agencies have agreed to accept the committee's recommendations provided they meet certain legal requirements, such as flexibility anld more carefully targeted projects. It also narTows the gap for enviromniiental impact statements. betweeni the supply of services and effective user demand for those services. An example of an evolving change in government responsibilities A NEW FORM OF GOVERNNENT toward infrastructure can be found in Sri Lanka. In 1975 the Department of Water Supply and Drainage, located within the Ministry of Local Government refonn over the long-term is as important as community Govemment, Housing and Construction, was almost entirely devoted to involvement in improving the state of infrastructure. In the past, provid- performing capital construction projects. In 1984 it was transformed into ing traditional forrns of infrastructure- -roads, garbage collection, an autonomous body with responsibility for developing and operating utilities. water supply-has been largely the domain of govemment water supply and piped sewerage. By late 1984 the company was bureaucracies. Such bureaucracies rarely are held to cost accounting and functioning reasonably well in terms of constructing new schemes but strict revenue constraints. Through bringing commercial practiccs into had bcen unable to shift its role from a focus on capital projects to the sector, the mind-set toward what infrastructure should be changes. opcration and maintenance and consumer billing. In 1985, with the help Instead of an inefficient drain on government resources, infrastructure of development assistance, the company began to develop corporate could be seen as an "industry," able to generate revenue and satisfy a planning, regional decentralization, improved operation and mainte- demand for services. "Even though most of infrastructure will retnain nance, improved financial management, and customer relations. The publicly-owned and some of it has a legitimate need for public subsi- department has succeeded in shifting from an engineering orientation to dies," says Kessides, "there is no reason that it can't be maniaged in the an operation, mainteniance, and commnercial orientation. Collections and same way commstercial enterprises are rtianaged." billings have increased, consumer complaints decreased, and the A major problem has also been that governments have interpreted the percentage of unaccounted for water has lessened. Although outside "public interest" in infrastructure to mean that governments should be the input to the project was key, its sustainability is due to the decentraliza- main suppliers of infrastructure and extensively control any private tion of responsibility to regional centers and the establishment of involvement. Governments, according to the World Bank study, must be effective corporate management capability in the institution. willing to stand back in some instances and allow the private sector to take on tasks it handles best. "Where an activity lends itself to competi- INNOVATIVE METHODS tion, for example," continues Kessides, "government shouldn't prevent the entry of the private sector into the process." Other commercial Tools for implementing greater participation by the private sector and aspects such as the use of market incentives (based on pricing through encouraging innovative government programs have been tried in user charges) can be used to improve performance. The main task of several developing countries. Under the "public enterprise/public government therefore is to provide an environment that promotes utility" arrangement (as illustrated by the Sri Lanka case cited above) competition, efficiency, and participation. This enabling approach allows infrastructure services arc turned over to autonomous or semi- THE URR[H RGE Spring 1993 INFRASTRUCTURE continued fromn page 5 autonomous public corporations. For this to produce incentives for good performance, the agencies must be given separate budgets and fimancial autonomy based on tariff revenues, and the managerial autonomy to act as a business. "Service contracting," as illus- trated by the AGETIP example (see story pg. 9) occurs when specific operations and maintenance are contracted out to the private sector; "management contracting" when responsibilities given to the private sector encompass a broad scope of operations and maintenance for longer periods of time. Through "lease contracting," private companies lease equipment from public agencies, or pay public owners for the exclusive rights to operate facilities for a period of time. And finally, "concessions" allow contractors to have all the obligations of lease contractors but with the added responsibility to extend or replace fixed assets, There is evidence as well that it is not as important who "owns" the services as it is to have clear and distinct lines of responsibility ; separating ownership, operation, and regulation. In France and Germnany, for example, public services such as water supply and sanitation have traditionally been provided by public or mixed- ownership corporations under contract with municipalities to perform operation and maintenance. Similar approaches are being used in a lease contract for water supply in Guinea and for power in Cote d'Ivoire. Likewise, ownership and regulation by strong local govern ments can help to ensure that an environmental agenda can be pursued effectively. Greater participation and involvement by NGOs assets of infrastructure to create networks of services that run the gamut should be prominent at the outset of a project and not as an add on. from airports to energy supply to landfills to waste treatment plants. "Good governance" or self-government through whatever local New technologies have the power to change our daily lives, much the community organizations have the support of the population is same way the automobile and airplane changed the lives of those living essential to allow cost recovery and ensure support for environmental in the twentieth century. "The virtue of infrastructure is its flexibility," protection, which can be costly. writes Herbert Muschamp of The NVew York Times, "It can be expanded Another condition that should exist according to the World Bank's to embrace, and to join together, many elements of the built environ- sector policy paper, is to encourage competition (even between public ment, including housing, transportation, and public space." and private operators). This requires disclosure of information (about William Morrish and Catherine Brown, architects/planners at the the condition of fixed assets, for example) and a transparent process University of Minnesota, in an article for the French publication of bidding for contracts. Second, regulatory policies should be based Urbanisme call infrastructure "the systemic framework which on a clear rationale for government intervention in determining the underpins a community's ability to fulfill its mission of providing a conditions for entry and/or tariff setting. In many cases, the possibil- base for its citizens to be productive and to nurture social equity." ity of competition eliminates the need for government to exercise Restoration of infrastructure signifies a renewal of a country's culture intensive regulatory oversight. Regulation does not always require a and value system, in much the same way as does the building of separate agency to be created for this purpose, but can also be monuments or the design of museums. In the end, the revival of exercised effectively through designing and enforcing a specific deteriorated infrastructures can have as much to do with peoples' contract, such as for a lease or concession for urban water services. priorities ancl values as with engineering properties or economic A basic prerequisite for regulation is a stable, predictable legal ambitions. "Infrastructure is a kind of public trust or common wealth framework which is enforced, especially regarding property rights, that should manifest something more than the sum of its parts," write, liability, and contracting. Finally, infrastructure is more likely to be Nancy Connery, a member of the U.S. National Academy Committee economically efficient, and to have favorable impacts on the environ- on Infrastructure. "It serves as a slender thread that weaves together ment, when it is subject to user charges. The absence of user charges human needs and values with those of our environment." This has often not promoted access to services by the poor, but rather translates into a shared commitment to people, their well-being, and reduced availability and worsened inequalities. User charges should the quality ol their lives. be based on economic prices reflecting both costs of supply and demand considerations (willingness to pay). A QUESTION OF VALUES Mary McNei Nuts and bolts aside, the changing nature of infrastructure carries with it a profound look into the future. Increasingly, people in both developed and developing countries will have to look beyond the tangible capital THE URRON AGE Spring 1993 Technical Exchange: The Raleigh-Tetouan Experience by Robert MaeL.eod Robertn,acLeod is an environmental advisor with liSAID's Office of Housing and Urbani Programns. he call to "Think globally. act In addition, the project is supporting V [locally" is more than a the development of a Sewerage _l f politically correct bumper Master Plan to assist the municipal- sticker in the U.S. city of ity select the most appropriate Raleigh. North Carolina. technology for a futLre wastewater - e Through an outreach program treatment plant. initiated by the U.S. Agency for To facilitate the implementa- International Development tion of the Sewerage Master Plan, (USAID), Raleigh n-ot only thinks USAID, in collaboration with the Uglobally but acts globally, too. Its International City Mianagenment partner is Tetouan. a bustling city Association, looked to the City of 74 on Morocco's northern coast. Raleigh for guidance. Raleigh was What binds this unlikely pair is a an ideal candidate: it is compa- .. - - shared concern for garbage and rable in size to Tetouan and has sewage, been recognized by the U.S. The Mayor of Tetouan and O7rMaoor of Raleigh si-gn In March 1992, the mayor of Environmental Protection a II a g reement of onernatioial cooperation. -i Raleigh and the president of the Agency as one of the best Council of Tetouaru met in North maniaged sewerage systems in Carolina and signed a formal the United States. Raleigh Agreement of Interinational agreed to share its lessoIIs Environmienital Services, giving equipment reaches Tetouan, Cooperation. At the heart of this learned in waste manauement the department autonomy and a Raleigh provides follow-up agreeinent was the resolve to find with Tetouan. It has been a broader mandate to plan for the technical assistance to ensure that practical solutions to problems dynamic and fruitful union. future are key components of a the equiprment is installed and associated with municipal waste One achievement has been the more effective system. mainLained properly. management. Raleigh brought to restructuring of Tetouan's In addition to imnproving What distinguishes the the table expertise and access to Technical Services Division into management skills through hands- Tetouan-Raleigh program from state-of-the art technology. smaller. more efficient and on technical assistance, the other technical assistance pro- Tetouan brought a roster of manageable departments. For program features another, more grams is its shared-ownership challenging solid and liquid waste- example, responsibility for solid tangible component: equipment. quality. Despite a generous related problems. The Moroccans and liquid waste management has On March 31. 1993. representa- commodity component, the also demonstrated an all important been consolidated under the tives of both cities met again, this program's success can be attrib- willingness to address these newly created Environmental time in Tetouan, to sign a Program uted to the good will that has been problems. Says Carl Simons of Services Depaltment. Agreement. Under the terms of this established between the leadership Raleigh's Public Works Depart- The result of this split has been second agreement. a $600,000 and citizens of Tetouan and ment. 'The municipality is to refocus human and financial letter of credit has been extended Raleigh. The high profile nature of fortunate to have these young. resources into a department that to the City of Raleigh for the entering into an International dedicated professionals in this not only overseas the day-to-day purchase of sewer line mainte- Agreement of Cooperation. division to carry out their managc- Tetcuan nance equipment and items coupled with the program's focus ment responsibilities. Everyone i: required for a water quality testing on environmental quality, provides seems to be extrcmely interested C,,-----a--- :-E laboratory. a solid foundation for sustained in learning new techniques to The program works likc commitment by both cities. In improve their ability to provide M i this. Based on previous needs effect, ownership of the program better and more efficient services -_ ,,assessments, the City of Raleigh belongs to the cities themselves. to the citizens of Tetouan." Morocco prepares a draft purchase order for Currently, efforts are focused on The Raleigh-Tetouan twinning Population 1990 25.1 million. equipment and materials specify- replicating the Tetouan-Raleigh arrangement evolved from an Growth rate 1 993 est. = 2.4%. ing quantities and costs. l'etouan twinning experience in Thailand Urban population in 1990 as a urban infrastructure project in percentage of the total = 48%. subsequently reviews and approves and Jamaica. Tetouan. GNP = $950 this order. Raleigh then applies its Under this program, two of the business of waste management, standard bidding procedures to city's largest low-income neigh- but also plays an important role in acquire the equipment in the borhoods will be improved establishing long-term waste United States for shipment to through the construction of new management policies and Morocco. All items purchased roads, sewer trunk lines, and a strategies. According to Abdelhak under this agreement enter potahle water distribution system. Drissi, Tetouan's Director of Morocco duty free. Once the THE URRRN A6E Spring 1993 Guinea-Bissau: Social Infrastructure Project Develops Schools, Hospitals by Ephim Shluger Ephim Shluger, a Brazil/lian architect, lived in Guinea-Bissau and was coordinator of the SIRP. Most Guineans live in extreme poverty and social deprivation. The country has one of the worst social indicators for health, infant mortality, life expectancy, and the status of women in the world. Per capita income is estimated at US$190 and life expectancy at birth is less than 46. The illiteracy rate is estimated at 70 percent; and about 60 percent of school age children do not attend schools. To mitigate the adverse effects of structural adjustment programs, the government in 1989 launched the Social and Infrastructural Relief Project (STRP). The project's main goal was to rehabilitate "social infrastructure"-schools. hospitals, clinics, and water and scwerage plants which were deteriorating due to limited government resources. The project was entrusted to the Ministry of Public Works, Planning, and International Cooperation, which worked closely with the Ministry of Education, the Ministry of Health and Social Assistance, and the Municipal Authority of Bissau. In addition to constructing up to 200 physical projects, SIRP was to create approximately 2,400 jobs during three years of implementation, mostly through public works contracts. In addition, skills training programs were to be designed as a way of improving opportunities for job placement in a market that increasingly demanded a higher quality of skilled labor. The project has rehabilitated and added new facilities to public schools, health centers and regional hospitals, public markets, dinr roads and paving of sidewalks, extended storm water drainage and built community water supply systems and promoted environmental sanitation in Bissau. In the education sector, 270 classrooms were rebuilt or added; roughly 16,000 students and 560 teachers are direct beneficiaries of these improvements each year. In the public health sector, three regional hospitals, in Bafata, Gabu. and Bolama and three health centers, in Bissora, Quinhamel, and Bambadinca, were rehabilitated. These works will provide direct health care access to residents in the provinces, substantially alleviating the demands Even though the project was never envisioned to assist in public currently imposed on the hospitals of Bissau. These facilities have sector reform., it has nonetheless improved and strengthened managerial also been upgraded by the provision of new equipment and furniture, capacity; most of the national technical staff employed on the projects and a supply of essential drugs procured under the SIRP. have first-hand exposure with more advanced forms of project manage- ment and implementation strategies. Yet the concern remains that the lmaintenance of rehabilitated buildings will suffer degradation once the construction phase is completed; the sustainability of public services in ii < . _.4i t X light of limited budgetary resources and general institutional weakness threatens their long-term existence. Similarly, few of the public services have adequate! mechanismns for cost-recovery. Machinery breaks down and spare parts are scarce; there is an ongoing shortage of trained workers and shortages of fuel to operate physical plants. To address these issues will require setting up a system of user charges. As for the long term, sustainable development of public infrastructure and delivery co socia services will largely depend on the reforms of the public sector and, particularly, in generating additional resources and vs>yr9 '\ > = 'Y \\ securing their proper allocation. For instance, implementing a more efficient collection and realistic levels of user-charges-needed for covering the rise of recurrent costs-would have lasting effects on quality, volume, and frequency of drinking water and sanitation services, t A - Of'. r 3AV r as well as for public health care and education programs. Project plans include the construction of a people's park to provide greenspace and an area for concerts and events. IHE U993 Spring 1993 AGETIP: Private-Sector Management Takes Root in Africa bY' Leslie Pe;an Leslie Pean is an zrban econzomlist in the .Africa Infiastructture Operations Division of the World Banik. P roviding urban services, such as schools and clinics, road mainte- central prerequisite to ensuring that operations will be run efficiently [l nance, sanitation, and drainage is an important prerequisite to and effectively (see box). ensuring and maintaining healthy living conditions, promoting a AGETIP is an alternative way for providing needed urban public ' safe environment, and encouraging economic activities. Until services. It relies on private-sector principles and companies while recently, these services often have been supplied inefficiently by the encouraging efficient employment creation. With the support of a 20- public sector through force account, or direct contracting. a system member professional staff. Senegal's AGETIP i) hires consultants to plagued by the vicious cycle of low productivity. payment delays, and high unit costs. Moreover. the policies of the public sector have not properly addrcssecd the problem of unemploymcnt among the urban ---------------- - - - _ poor who are swelling the inner cities. This problcm has been accen- tuated in the short term by structural adjustment measures. Rn Interview with Magatle Wade, Executive Director The Agence d'Exccution des Travaux d'lntcret Public. currently known under the French acronym of AGETIP, is a Public Works of RHETIP, Da f, Senegal Executing Agency. The first AGETIP was created in Senegal in 1989 and the Public Works and Employment project was launched in March 1990. Today. similar projects are being executcd in five other African UA: Why do you think AGETIP works as well as it does? countries (Niger. Benin, Burkina Faso. Mali, Mauritania) wlhile four are bcing prepared in other countries (Gambia, Chad, Madagascar. Togo). Wade: AGF.TIP is based on the "owner's delegate" concept, which These executing agencies are privately managed legal entities that enter delegates authority for providing needed infrastructure services to the into a contractual arrangement with the central government for execuitin private sector. The government doesn't interfere in the operation of the mto a contractual arranacmnt, wZth the central oovern for company; the owner's dclegate concept gives autonomDy and protection to infrastructure projects. The contractual arrangement is stipulated in AGETIP so that it can operate like a small enterprise. several documents, among which are an agreement and a manual of procedures defining the duties and responsibilities of the two parties. The UA: One of the benefits of the AGETIP concept is that it uses labor- main contribution of the manual of procedures is that it provides a solid intensive methods, generating employment among low-income groups. organizational set-up and guide for the project. Ihese guidelines ensure How does this work) that projects stay on course when socio-politicatl and economic forces Wade: We keep a roster of entrepreneurs and local consultants. When a try to pull it in different directions. project comes up, we have it designed to r-equire that between 20 to 50 Municipal and central governments sign specific delegated contract percent of the funds available should go to salaries. thus ensuring that we management agreements with A(iETI P each time they submit a project deal with the employment issue. This also promotes small entcrprises gt . working in the construction business. We have an obligation to recruit for execution. T'he delegated contract management framework incorpo- people in a labor-intensive manner: not to do the work through the use of rates institutional arrangements that give AGETIP's managers the heavy machinery. independence and autonomy needed to run an efficient, impartial, and transparent UA: How does it work to create employrment for youth in urban areas? operation. The - - coherent legal ~~~~~~~~~~~Wade: We hire young people who, although they have little traininig, are -- .: t >'dis4A ,ert. i able to work on labor-intensive projects. We can hire them on a short- regime, of a not- term basis, and then keep them on our rosters. For many young people, for-profit entity. this is a good arrangement. reflecting the French Law of UA: What is the starting point for getting projects simiilar to AGETIP -~~~ ~19(01 or the US launched in other African countries. 501-C3 type Wade: For us in Senegal. the concept was given a chance because the 1;| -i sor-anizatione is President was willing to be aggressive about employment issues. The p ~~~~~~applicd to owner's delegate concept involved us working through the puiblic shelter sector while still making ase of the private sector. For me. an essential AGETIP-type prerequisite is that there be an open political mind to the idea, If you structures from have any restrictions that prohibit you worl-ing like a private politia l company, it is better not to become involved in che concept. u~~ 4 . -' ~~ pressures. According to prepare designs and bidding documents and to supervise works, it ii) e 4X l _ AGETIP issues calls for bids, evaluates and adjudicates the bids, and signs the Executive contracts: and it iii) evaluates progress. pays the contractors, and Director. represents the owner at the final handover of the works. The "con- Magatte Wade. tracting-out" approach creates demand for the services of local independence contracting and consulting industries. stimulating their development. @ Magatte Wade disctisses the from political constructio on of a primary interference is a school classroom, contionuedoanpage O THE URHRN 19E Spring 1993 AGETIP continuedfrom page 9 AGETIP currently has 980 local contractors and 260 local consultants Groupements, d'Inter&t Economique (GIE) in executing works and on its roster. services for AGETIP provides an element of ownership that in turn AGETIP uses an integrated approach that takes into account the represents the first step in ensuring the maintenance of completed works. limited output of small contractors, the existence of an unlimited Along with an information/education campaign for the population, this I supply of laborers, the weak project-identification capability of involvement is vital for harnessing the stifled "critical mass" needed for . local governments, and the availability of consultants, architects, good governance. and consulting engineers. These constraints are carefully evalu- The AGETIPs recently met in Ouagadougou to create AFRICATIP, a ated to design works in such a way as to promote competition while network to exchange experience and a forum to critically examine and facilitating access to small contractors. Project eligibility and selec- fine-tune the "machinery" to maximize its usefulness to meet the urban tion criteria are spelled out, with particular emphasis on challenge. Coordination between executing agencies is important not labor-intensive methods (labor costs must exceed 20 percent of total only to maintain the orientation of these public works programs but also estimated project costs). Open competitive bidding weeds out to get the most from AGETIP in terms of urban management. wasteful and inefficient operators. In addition, AGETIP looks not only at the management aspects of executing public works but also at the accompanying measures necessary to help municipalities, contrac- tors, consulting engineers, and the population at large to participate in implementing projects. As of January 1993, Senegal's AGETIP had implemented 330 projects for a total amount of US$54,788,000. These projects are located fleinl P u e in 78 municipalities and have created 50,600 temporary jobs correspond- 77 ing to 1,585,000 man/days of employment, or an average job duration of THE URERN 0CE Spring 1993 Urban Calendar NewslethI8 fs Continuedfrom page 15 ___ _ L A selected list of newsletters and World Secretariat Management Sc-iences for Health-Urban Health. The Global journals carrying information on 8th floor, East Tower, City Hall Challenge, August 23-September 15, 1993. For more details contact: urban development issues. 100 Queen St. West Management Training, Management Sciences for Health, 165 Toronto, Ontario 1 Allandale Rd., Boston, Ma., 02130-3457 U.S.A. BBSAWS-Sudan Newsletter M5H 2N2 Canada Tel.: 617-527-9202, Fax: 617-965-2208. Babiker Bedri Scientific Association for Women Studies JOICFP NEWS University of Wales-MSc. courses are available in City and Regional P.O. Box 167 Hoken Kaikan Bekkan Planning, Urban Planning in Developing Countries, Transport, and Omduramran 1-1, Sadohara-cho, Ichigaya Technical Change and Regional Development. For more details contact: Sudan Shinjuku-ku, Tokyo 162 Ms. C. Trevett, Admissions Secretary (UA), Department of City and Japan Regional Planning, University of Wales, DISASTERS: PREPAREDNESS P.O. Box 906, Cardiff CF1 3YN, United Kingdom. AND MITIGATION IN THE LA OTRA Bolsa de Valores Tel.: 0222-874000, Fax: 0222-874845. AMERICAS Tldloc 40-3, Col. Anahuac Pan American Health CP 11370, Mexico, DF Centre for African Settlement Studies and Development Organization MEXICO (CASSAD)-offers the following courses: Workshop on Urban Waste 525 23rd St. N.W. Management and Affordable Waste Management Technology, August Washington, D.C. 20037-2895 URBAN ECOLOGIST 23-27, Techniques of Environmental Inpact Assessment (EIA) and the U.S.A. P.O. Box 10144 Preparation of Environmental Impact Statements (EIS), September 20- Berkeley, California 24, 1993. For more details contact: CASSAD, No. 3, Ayo Adekunle HEALTH ACTION 94709 Close, New Bodija Estate, P.O. Box 20775, U.I. Post Office, Ibadan, AHRTAG USA Nigeria, Tel.: 022-712727, Fax: 022-414536. 1 London Bridge St. London SEI 9SG SAFE MOTHERHOOD Pratt Institute Center for Community and Environmental U.K. Maternal Health and Safe Development-Pratt Community Economic Development Internship, Motherhood Programme October 1993-June 1994. For more details contact: Ron Shiffman IBAM NEWSLETTER Division of Family Health (Director), Graduate Center for Planning and the Environment, Pratt Brazilian Inst. of Municipal WHO Institute, 200 Willoughby Ave., Brooklyn, N.Y., 11205 U.S.A., Administration 1211 Geneva 27 Tel.: 718-636-3486, Fax: 718-636-3709. Largo IBAM No.1, 22282 Switzerland Rio de Janei]ro International Centre for Earth Construction-Offers specialized Brazil SOCIAL WEATHER BULLETI1 training in: The Preservation of the Earthen Architectural Heritage, Fax: 021-537-1262 Social Weather Stations, Inc. Economic Construction and Local Building Materials, The Technology Room 312 Phil. Social Science of Compressed Earth Blocks, a certificate course in Advan ced Studies on INTERNAT[ONAL CENTRE Center Earthen Architecture and a Diploma course in Building Practice, FOR INTEGRATED Comrnmonwealth Ave. Architecture and Culture, course dates to be announced. For more MOUNTAIN DEVELOPMENT Diliman, Q.C. details contact: Ms. Marina Trappeneirs, c/o CRATerre-EAG, BP 2636, (ICIMOD) Newsletter Philippines 38036 Grenoble Cedex 2, France, Tel.: 33-76-40-14-39, Publications Unit Fax: 33-76-22-72-56. ICIMOD VILLES AFRIQUE G.P.O. Box 326 IAGU International Institute of Rural Reconstruction-Offers a training Kathmandu, Nepal BP 7263 course on Regenerative Agriculture, October 1-29, 1993. For more Dakar, Senegal details contact: The Director, Division of International Training and INITIATIVES Outreach, IIRR, Rm. 38, Elena Apt. R. Salas St., Ermita, Manila, ICLEI NcwsLetter VOICES FROM THE CITY Philippines, Tel.: 58-26-59, Fax: 632-522-24-94. International Council for WASH Infromation Center Local Environment Initiatives 1611 N. Kent St. Room 1001 Arlington, Va. 22209, U.S.A. 0 . . . . . . . . . . . . . T4 '-~-~ Ihe UfbalI ORe is printed b 14 ll'~~~~ 'i~~ ~ ~ i PRESSTARprinterse THE URBRN RbE Spring 1993